- The UK stock-market rallied on Friday to close up for the week. Earlier in the week the focus was on a third wave of coronavirus infections in Europe with Angela Merkel recommending a lockdown extension of four-weeks in Germany saying “we are now in a very, very serious situation”.
- UK data released on Tuesday showed that the rate of inflation fell unexpectedly to 0.4% in February, down from 0.7% in January. This is more than one percentage point below its 2.0% target.
- Tensions regarding the ongoing quarrel between the EU and UK over vaccine supplies were eased a little mid-week when a joint statement was released saying both sides were looking for a “win-win” solution.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
- The US stock-market was higher for the week despite concerns over interest rates and rising infection numbers in many states.
- The 10-year U.S. Treasury yield fell back early in the week after Fed Chair Jerome Powell told the House Financial Services Committee on Tuesday that “the recovery has progressed more quickly than generally expected and looks to be strengthening”. However, the yield rose again on Friday after Thursday’s weekly jobless claims fell to the lowest level in more than a year.
- Following the announcement, the 10-year Treasury yield reached 1.67%, a 14-month high, and stocks fell to the end of the week. At the start of this week the yield remains close to that level. Fed Chairman, Jerome Powell, is due to speak on Tuesday.
- President Joe Biden helped lift sentiment with a revised aim to vaccinate 200 million Americans within the first 100 days of being in office. Our Breadth indicator stayed positive but our Momentum Indicator ticked down again.
The Big Picture 26th March 2021
Market Sentiment 26th March 2021
U.S. Risk Barometer 26th March 2021
Europe Risk Barometer 26th March 2021
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